Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Lecture Notes
Chapter 2: Practicing Entrepreneurship
Learning Objectives
• Compare and contrast the prediction and creation approaches to entrepreneurship.
• Create a portfolio of five skills essential to building a mindset for the practice of
entrepreneurship.
Two Main Perspectives on Entrepreneurship
• The Prediction Approach -Views entrepreneurship as a linear process where steps are
followed and outcomes would be predictable.
Notes:
Prediction works best in times of certainty and when there is access to existing information and
data upon which to base decisions. Prediction is the dominant logic of large, established
organizations, where goals are predetermined, issues are transparent, and information is
Two Main Perspectives on Entrepreneurship
• The Creation Approach – Views entrepreneurship as a method that requires practice.
Notes:
SAGE Publishing, 2018
Prediction and Creation
Notes:
2.1 Compare and contrast the prediction and creation approaches to entrepreneurship.
Entrepreneurship: The Five Most Important Skills
• Play
• Empathy
The Skill of PLAY
• Frees the imagination
• Opens up our minds to opportunities
• Helps us become more innovative
The Skill of Empathy
• Understanding the emotion, circumstances, intentions, thoughts, and needs of others.
• Allows you to connect with potential stakeholders.
• Can help identify unmet needs
Notes:
Neck, H. Entrepreneurship Requires Practice: Part 1—The Five Practices. Forbes, September 9,
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
The Skill of Creativity
• Requires openness to the world
The Skill of Experimentation
• Acting in order to learn
• Collect real-world information
The Five Skills
Critical Thinking Question
• To what extent do desirable qualities in an employee differ from desirable qualities in a
business owner or entrepreneur? Explain your answer and give examples.
The Skill of Reflection
• Helps critically analyze our feelings and knowledge
• Provides new perspectives
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Six Ways to Practice Reflection
• narrative reflection
• emotional reflection
• perceptive reflection
Traditional Steps of Entrepreneurial Process
• Step 1. Think of an idea
• Step 2. Do market research
• Step 3. Get some financial projections
• Step 4. Find a partner/team
• Step 8. Bring your product/service to market
Entrepreneurship is more of a method than a process
• The process approach= planning and prediction
• The method approach= more trial and error based
Notes:
Entrepreneurship is certainly not linear or predictable; it is ill-defined, unstructured, and
complex. In fact, some statistics shows that 8 out of 10 entrepreneurs who start businesses in
the US fail within the first 18 months; others show that most failures occur in the first two years
of business.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Wagner, E. T. Five Reasons 8 out of 10 Businesses Fail. Forbes, September 12, 2013. Accessed
October 4, 2014.
Ideas about the Method Approach
Notes:
Source: Neck, H.M., and Greene, P.G. 2011. Entrepreneurship education: Known worlds and
Method vs. Process
Notes:
The Practice of Entrepreneurship
• Emphasizes smart action over planning
• Moves quickly from white board to real world
Critical Thinking Questions
• What strengths and weaknesses do you see in the creation view of entrepreneurship?
Give some examples that would apply to real life.
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Mindshift
Eight Components to the Entrepreneurial Mindset
• Reflect on your desired impact on the world.
• Start with means at hand.
• Describe affordable loss.
• Calculate the idea today.
Notes:
As you continue with the practice of entrepreneurship, you’ll find that your affordable loss
changes (usually increases) with each action. Why? Your idea receives greater validation, you
Vera Bradley and Mary Kay tips for success
• Concentrate on what you do best
• Don’t be satisfied with the status quo—innovate and practice continuous improvement
• Choose the right people to work with: vendors, bankers, and employees
• Networking is important; it’s important when people like you and you like them
Instructor Resource
Neck, Entrepreneurship
SAGE Publishing, 2018
Components of Deliberate Practice
• high levels of focus, attention, and concentration
• strengthens performance by identifying weakness
• must be consistent and be maintained
Why deliberate practice?
• Researchers found that over time, students who used deliberate practice were able to
Entrepreneurial Theory
• Theory of Effectuation the idea that the future is unpredictable yet controllable and